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2023 (7) TMI 1291 - ALLAHABAD HIGH COURTLevy of penalty upon the petitioner by not treating the petitioner to be the owner of goods - seeking release of seized goods - intent to evade or not - it is contended that the petitioner is the owner of the goods and is ready and willing to deposit penalty under protest under Section 129(1) (a) to get the goods released - perishable goods - HELD THAT:- Strong reliance has been placed upon the decision of this Court in M/s Sahil Traders Vs. State of U.P. [2023 (6) TMI 360 - ALLAHABAD HIGH COURT] which applies squarely to the case at hand. Sri Ankur Agarwal, learned counsel representing the revenue has vehemently opposed the writ petition by submitting that the petitioner has rightly been held not the owner of the goods and the penalty has rightly been imposed upon the petitioner under Section 129(1) (b). He, however, could not dispute the fact that intention to evade tax is a per-requisite for imposition of penalty under Section 129 of the Act. The E-way Bills being the documents of title to the goods were accompanying the goods hence, the conclusion of the revenue that the petitioner was not the owner of the goods is patently erroneous. Consequently, the penalty proceedings were liable to be initiated under Section 129(1)(a) and not 129(1)(b) as has been done in the present case. Thus, expressing full agreement with the view expressed by the Coordinate Bench of this Court in the case of M/s Sahil Traders, the impugned penalty order is set aside - The Respondent No.2 is directed to pass fresh order treating the petitioner to be eligible to the benefit of Section 129(1) (a) of the Act. The writ petition is allowed.
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